Introduction Nidhi Companies are unique entities under the Companies Act, 2013, established to promote the habit of savings among members and provide loans only to their members. Since they deal with public deposits, the law imposes strict conditions on their functioning. One of the most important rules relates to the minimum requirements that every Nidhi […]

Introduction The regulation of Nidhi Companies in India has evolved significantly through successive amendments to the Nidhi Rules. Two of the most important provisions are Rule 3A (Declaration of Nidhis) and Rule 3B (Amendment Rules, 2022). Both provisions deal with the process of recognition of a public company as a Nidhi, but they differ in

Introduction The regulation of Nidhi Companies has always been a sensitive matter because they deal directly with public deposits and loans. To bring greater transparency and control, the Ministry of Corporate Affairs introduced amendments to the Nidhi Rules, 2019 and further strengthened them in 2022. One of the most important provisions is Rule 3A on